OmniCalcsRefinance Calculator
See whether a new rate and term would lower your payment enough to cover closing costs.
How to Use This Refinance Calculator
Enter the balance still owed, your current rate and years left, then the new rate, new term and estimated closing costs. The calculator compares principal-and-interest payments and shows how long it takes to recoup the refinance fees.
- Current balance — what you still owe, not the original loan amount.
- Years left — remaining term on the existing loan.
- New term — length of the replacement loan. A longer term can cut the payment while raising total interest.
- Closing costs — lender fees, title, appraisal and other cash due at refinance.
Practical Example
A $200,000 balance at 6.5% with 25 years left, refinanced at 5.5% for 25 years with $4,000 in closing costs:
- Current payment is about $1,350 per month.
- New payment is about $1,229 per month.
- Monthly savings is about $121.
- Break-even is roughly 33 months ($4,000 ÷ monthly savings).
If you plan to keep the loan past the break-even point, the lower rate is usually worth the fees.
What Your Results Mean
- Monthly savings — how much less you pay each month for principal and interest. Taxes and insurance are not included.
- Break-even — months of savings needed to cover closing costs.
- Lifetime savings — remaining payments on the old loan minus remaining payments on the new loan, after closing costs.
Frequently Asked Questions
When does refinancing make sense?
It usually makes sense when the monthly savings recover closing costs before you sell or pay off the loan, and the new rate is meaningfully lower after fees.
Should closing costs be rolled into the new loan?
This calculator compares payments on the same balance and treats closing costs as cash you recoup through lower payments. If you finance the fees, your new balance is higher and savings shrink.
Why can a lower payment still cost more overall?
Stretching the term (for example 15 years left into a new 30-year loan) cuts the payment but can increase total interest. Check lifetime savings, not only the monthly figure.
Does this include taxes and insurance?
No. Escrow for property tax and homeowners insurance is unchanged by the rate, so the comparison is principal and interest only.
What if monthly savings are zero or negative?
Then the new loan does not pay for itself on payment alone. Break-even is not shown, and you would refinance only for a shorter term, cash-out, or to drop PMI — none of which this tool models.